Warm up: What is compound interest? How can it get you in to trouble with credit card debt?
Warm up: How did you feel when you "had" credit card debt? Are you comfortable carrying a balance on a credit card and paying interest?
Compound interest Activity
Read Credit Card Debt Statistics.
In your journal:
Save a copy of the Compound Interest worksheet and share it with me.
#1-What is the average amount of credit card debt held by each person in the US with a credit card-from the article on credit card statistics
#2-What is the interest rate on your credit card?
Daily interest: 17.9%/365 days = .05% per day
Monthly interest: .05% * 30 days= 1.49%/ monthly
Your monthly interest rate replaces the 1.49% in the cell
#3 The minimum monthly payment is $100
Questions to answer PART 1
# 4 Now try it with your monthly payment from the credit card activity on 10/08
Questions to answer PART 2